Banana Farmers Say: ‘We Sold at Last Year’s Prices, So Why Are Market Prices Higher?’

Despite reports of consumers paying exorbitant prices for bananas, farmers insist they have been supplying bananas to the market at prices consistent with previous years. Ghannath Mahato, a banana farmer from Chitwan, stated, “We have been selling the G9 variety of bananas at NPR 5 to 6 per kilogram and Malbhog bananas at NPR 7 per kilogram.” He explained that although demand for bananas might be higher this season, farmers have not sold them at prices exceeding their value. Mahato expressed surprise at hearing that consumers are buying bananas at much higher prices than what farmers received, urging the government to investigate and take action against those charging excessive amounts.

Laxman Subedi, a commercial banana farmer from Chitwan, also confirmed selling G9 bananas at NPR 60 per dozen and Malbhog bananas at NPR 85 per dozen. “Last year, bananas were sold at the same price, and the prices have not changed this year,” he said. Subedi accuses a few select traders of artificially inflating prices. Due to current restrictions preventing businessmen from importing bananas from India, he believes some traders have artificially raised prices to increase banana costs in the market.

Farmers sell bananas to wholesale traders in Kathmandu, Pokhara, Butwal, and Chitwan. The wholesalers then distribute them to retail sellers, passing through three levels before bananas reach the general consumers. The government has halted banana imports from India due to the threat of the Tropical Race 4 (TR4) variant of Panama disease, which rapidly spreads and can destroy entire banana plantations.

Vishnu Hari Pant, chairman of the Nepal Banana Producers Federation Ad Hoc Committee, says the stark difference between the low prices at which farmers sell and the high prices consumers pay indicates heavy intervention by intermediaries in the market. Hari Mainali, a wholesale businessman in Kathmandu, stated that bananas imported from Nepali farmers are sold at prices between NPR 130 and 140 after adding transportation costs. “There has been no clear identification of who is smuggling bananas from India and where they are selling them,” he added.

Vinod Prasad Gupta, a fruit businessman from Narayangadh, Chitwan, reported selling Malbhog bananas at NPR 150 per dozen and other banana varieties between NPR 180 and 200 per dozen. He mentioned that Malbhog bananas are locally grown, while other types are imported from India. However, Vishnu Hari Pant noted that wholesale traders are inflating prices by selling Nepali bananas at higher prices than what they paid to farmers, sometimes passing them off as Indian bananas.

According to banana industry sources, banana cultivation in Nepal spans approximately 15,500 hectares and involves 7,633 farmers. Nepal requires around 900,000 metric tons of bananas annually, but domestic production amounts to only 700,000 metric tons. Consequently, about 200,000 metric tons of bananas must be imported each year to meet demand.